COMSCORE, INC. 10-Q

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Market risk represents the risk of loss that may impact our financial position due to adverse changes in financial market prices and rates. We have outstanding warrants that are subject to market risk. We also have foreign currency exchange rate risk from our global operations. Warrants liability financial instrument risk As a result of having $12.8 million in liability related to outstanding warrants as of March 31, 2021, which warrants are exercisable for shares of Common Stock under certain conditions, we are subject to market risk. The value of the warrants, and the number of shares likely to be issued under the warrants, is impacted by changes in the market price of our Common Stock. As described in Footnote 1 , Organization, and Footnote 5 , Convertible Redeemable Preferred Stock and Stockholders' Equity , on March 9, 2021, our stockholders approved Transactions to issue preferred securities. The exercise price of our Series A Warrants is subject to anti-dilution adjustment in certain circumstances, including upon certain issuances of capital stock. As a result of the Transactions, the exercise price of the Series A Warrants was adjusted to the closing price of the Transactions. As of March 31, 2021, a 10% increase in the market price of our Common Stock would result in a $1.7 million increase in the fair value of the Series A Warrants, while a 10% decrease in the market price of our Common Stock would result in a $1.7 million decrease in fair value of the Series A Warrants. Foreign currency risk For additional discussion of the market risk associated with our foreign currency risk, refer to Item 7A , "Quantitative and Qualitative Disclosures About Market Risk" within the 2020 10-K. 29 Table of Contents